Posted by christine.mendenhall on November 16, 2006 at 12:08:52:
Here’s what I do.
First and foremost you need to make sure the Title Company you?re going to close with will allow the double close. If not, here?s a hint on how to find one, Bill Bronchik, has a huge REI club there in Denver, you should be able to go to that meeting and find another investor who knows of a Title company that will perform the double close.
Once you have that, here’s how to get it done.
You are going to have to place the house in a land trust with an assignment of beneficial interest. (You, of course, will be assigned the beneficial interest) If you do not have one, email me and I will send you mine. It is for Illinois and I have one for Missouri, but you should be able to rework it to your state specification pretty easily.
You will need to have two different contracts one for the buyer and seller, you already have one for the seller and you may have one in writing from the buyer, if not, get it, the title company will need it. You may, and I have, come into the issue with the buyer?s lender as to why this house is in a Land Trust. They usually will question it and my reply is always, ?It was in the best interest of the seller to have it placed in a land trust for asset protection.? If they want to see it come out the land trust, get a new lender, I have one who can pull off this deal in Colorado pretty easily.
At the closing, you are going to close with the buyer first and use their funds to pay off the sellers lender netting the monies in between for yourself through the assignment of beneficial interest. And, if you?re dealing with the right people, it?s just that easy.
C